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Chapter 2- Bank Reconciliation
Terms in this set (24)
ANALYSIS: It is the "process" (meaning it ends by "ion") by which the bank account balance in an entity's books of account is reconciled to the balance reported by the financial institution in the most recent bank statement. Any difference between the two figures needs to be examined and, if appropriate, rectified.
Current or checking deposit withdrawable on demand(meaning anytime) that has no interest in form of slips
Interest bearing Deposit that can be preterminated (revoke) but withdrawable
Interest bearing deposit that can have a notice of withdrawal and needs a passbook
What is compared by the bank teller in the "card" and "check" to determine the authenticity upon withdrawal? It is the specimens____
Why is a credit memo a credit in nature? Type the letter of the correct answer. A. Because in the bank, they debit the account of the depositor upon deposit B. Because it the bank, they credit the account of the depositor upon withdrawal C. Because in the bank, a receipt of cash on the account of the depositor is a liability (credit) of the bank to the depositor.
C.This is for a safekeeping purpose
Payee is the "babayaran" or the creditor. Hence, payor is....
the magbabayad ng utang or liability
Upon payment of accounts payable through check, the bank credits the name of the entity because
it means that the bank reduces its liability to the depositor
Cr memo and Dr memo are the "books" reconciling items. WHY? Type the letter of correct. A) BANK has no record of this B) BOOK has no record of this
cash bank per ledger means. Type the wrong letter. A) Adjusted B) unadjusted
Book balance + credit memo - credit memo = ?
adjusted book balance
Adjusted cash-in-bank balance means that adj. book balance = adj. bank balance. TRUE OR FALSE
If the "bank received cash upon payment of the customer of a depositor, it means that the "book" (still not being able to record the receipt) is_____ Type the wrong letter. a) understated b) overstated
In book to bank method, we need to deduct these reconciling items....
debit memo and deposit in transit
Cash bal book not equals Cash bal bank means
Kung may accrual basis ng accounting sa FAAR, therefore, the bank reconciliation reflects
adjustment of accounts not recorded
adjusting entries in bank recon is "ONLY" for
IF compensating balance is not legally restricted, it is part of cash. True or false
if legally restricted, the compensating bal. is separated from cash as "AR held as compensating balance" true or false..
False. "Cash held as compensating bal.
Why do we restore "dr cash and cr AP" in undelivered checks?
Such check can be cancelled by the entity
It is true that imprest system do not record payment of expenses
It is true that adjusting entries at the end of the period is needed in fluctuating system in PCF.
It is true that IA1 is easy. True or false
A BIGGGG TRUEEEE CHARRRRRRR FALSE YAN HAHAHA
"REPLENISHMENT" means credit to account named
OTHER QUIZLET SETS
Chemistry Unit 6 Exam
EXSC 224 L questions
Unit 1 Vocabulary (Ch.28-29)